Thanks for the insights..Gurgaon prices have really skyrocketted in last 3 years...one additional observation..my relatives, friends put their lives on hold once they take home loan.. targetting prepayment and completely ignoring other goals like retirement..I feel opportunity cost of borrowing future money for real estate overlooks equity most of the times and is less beneficial in long term..like you mentioned from growth perspective equities is superior provided one can bear volatility..Again thanks for wonderful content 👍
A very good comprehensive analysis. I’m invested in a lot of asset classes but not much in real estate. And, I learned a lot. Thank you for sharing. Please keep it up. 👏
builder sells new flat A in 2019 for 100 Rs. builder sells new flat B in 2020 for 110 Rs. (10% rise) builder sells new flat C in 2021 for 121 Rs. (10% rise) builder sells new flat D in 2022 for 133.1 Rs. (10% rise) builder sells new flat E in 2023 for 146.41 Rs. (10% rise) builder sells new flat F in 2024 for 161.051 Rs. (10% rise) If we analyze the data, the conclusion is that residential flats prices go up by 10% year on year. Reality: When a person who bought flat A in 2019 tries to sell the flat in 2024, he'll be able to fetch 140 Rs. (vs 161.051 for a new flat.). so person got an appreciation of 7% only. (In this 7% appreciation I did not consider stamp duty, maintenance etc. etc. otherwise this figure will look even worse) Why only 7% 1. The building has become old and there are lot of seepages due to poor construction. (This is not an exception where I stay. Very few buildings age well.) 2. New flats have the latest amenities/features which this 2019 flat does not have so that has an impact on price. 3. The seller was desperate for liquidity so he sold for 140 Rs. only. Real estate is a good investment if you're a builder.
I don't agree - when you think of rental appreciation in the same period i.e. also 10%....Also why does the question of selling a flat comes - when you have to live in it....Selling question should come after 20-25 yrs minimum
If person decides to sell flat after 20-25 years then return will be even lower. Today, most of the flats are non mivan. They don't age well. 20-25 years old flat will be easily chaeper by 30% vs a new flat.
@@santoshzalavadiya7367 What abouth the cost of land and location? Try getting 40 yr old flats in core Mumbai areas like Churchgate and Andheri...They still cost a premium
Data is not correct for NCR. Not sure which area u covered but Gurgaon, Noida Extension, Noida Expressway has almost doubled the money in 2-3 years. I have my own flat
I think "Fractional Real Estate" will help with the Single asset problem. I would prefer REITs over any other real estate investment apart from owning my primary residence.
Have you taken dividend yield that a real estate generates? Also, could you consider adding the value of leverage which real estate offers over other assets?
Good analysis, liked the whole storyline. However tax benefits, especially 80C ones, are NOT great and sec 54F can be used only once. Also, since introduction of new tax regime, if the annual interest outgo is less than 2L (4L for a couple), New tax regime is favorable thus defeating the whole real estate tax benefits. (telling from personal experience, I prepaid because I prefer peaceful sleep )
Hi Dear, I am following you last few months and I want say that it is informative and good as how to create the portfolio and fire thing to get financial independence. But my dear as far as u are saying about NCR in real estate. I want to share my experience as below: Noida Sector-150 and particularly Godrej Nest apartment is concern 1.) 2BHK +study (1550 SQFT) u get around 5200-5400 (01JAN2018) price and now if u sell as on 24MAY24 is 10500-11000 (24MAY24) So if u see XIRR would be 18% - 20% Appox. Please Note : That also paying in 20:20:20:20:20 payment plan. Plus fortunate or unfortunately got extra time for around 1 year due to Corona problem.( Which I am not happy about at all due to obvious reason)
The main point I am trying to make in this video is that it isn’t about an individual case. There are plenty of great stories. There are plenty of horror stories as well. To make a judgement, you need to look at much larger data.
You just took your comfortable range of 2018 to till date to show good XIRR. What about 10-15 years long data on that flat or similar properties in that area? What's the XIRR?
@@WalterWhite-og6wj Boss nothing much to say here. I am just saying location is the key thing. Noida as a whole till now not good. Your luck in your favor as well. XIRR is like CAGR U earn per year on my equity portfolio. Hooe it is clear. I am nig here to proof anything and just share my exp which is impt and nothing else as your mind set brcoes with your exp and circumstances. Thanks a lot dear. Bye
Incomplete information. If you buy in ubder construction. Top location top builder . Your money goes in 4 years to builder. Which means you buying real estate in 4 years old rate . Also what about rental yield.
![How To Invest In Real Estate Without Making These Mistakes - Robert Kiyosaki [The Rich Dad Radio]](http://i.ytimg.com/vi/A59IFiJyyDM/mqdefault.jpg)
![How To Invest In Real Estate Without Making These Mistakes - Robert Kiyosaki [The Rich Dad Radio]](/img/tr.png)
Thanks for the insights..Gurgaon prices have really skyrocketted in last 3 years...one additional observation..my relatives, friends put their lives on hold once they take home loan.. targetting prepayment and completely ignoring other goals like retirement..I feel opportunity cost of borrowing future money for real estate overlooks equity most of the times and is less beneficial in long term..like you mentioned from growth perspective equities is superior provided one can bear volatility..Again thanks for wonderful content 👍
Thanks.
A very good comprehensive analysis. I’m invested in a lot of asset classes but not much in real estate. And, I learned a lot. Thank you for sharing. Please keep it up. 👏
Glad you liked it.
Do u own a house ?
Very insightful! Especially loved your opinions and conclusions
Glad you enjoyed!
builder sells new flat A in 2019 for 100 Rs.
builder sells new flat B in 2020 for 110 Rs. (10% rise)
builder sells new flat C in 2021 for 121 Rs. (10% rise)
builder sells new flat D in 2022 for 133.1 Rs. (10% rise)
builder sells new flat E in 2023 for 146.41 Rs. (10% rise)
builder sells new flat F in 2024 for 161.051 Rs. (10% rise)
If we analyze the data, the conclusion is that residential flats prices go up by 10% year on year.
Reality:
When a person who bought flat A in 2019 tries to sell the flat in 2024, he'll be able to fetch 140 Rs. (vs 161.051 for a new flat.). so person got an appreciation of 7% only. (In this 7% appreciation I did not consider stamp duty, maintenance etc. etc. otherwise this figure will look even worse)
Why only 7%
1. The building has become old and there are lot of seepages due to poor construction. (This is not an exception where I stay. Very few buildings age well.)
2. New flats have the latest amenities/features which this 2019 flat does not have so that has an impact on price.
3. The seller was desperate for liquidity so he sold for 140 Rs. only.
Real estate is a good investment if you're a builder.
I think real estate price will stop appreciating once our population starts declining.
@@ShivamGupta-wf5ni Even if rate of population growth stops growing fast, urbanization is still rapid and it would be there for next 50 yrs
I don't agree - when you think of rental appreciation in the same period i.e. also 10%....Also why does the question of selling a flat comes - when you have to live in it....Selling question should come after 20-25 yrs minimum
If person decides to sell flat after 20-25 years then return will be even lower.
Today, most of the flats are non mivan. They don't age well.
20-25 years old flat will be easily chaeper by 30% vs a new flat.
@@santoshzalavadiya7367 What abouth the cost of land and location? Try getting 40 yr old flats in core Mumbai areas like Churchgate and Andheri...They still cost a premium
Data is not correct for NCR. Not sure which area u covered but Gurgaon, Noida Extension, Noida Expressway has almost doubled the money in 2-3 years. I have my own flat
I think "Fractional Real Estate" will help with the Single asset problem. I would prefer REITs over any other real estate investment apart from owning my primary residence.
It would definitely be better than the current situation.
Have you taken dividend yield that a real estate generates?
Also, could you consider adding the value of leverage which real estate offers over other assets?
Real estate has no dividend yield. Yes - have considered leverage.
Wonderful video. Love your videos for the quality content and taking an objective view that’s more fact based.
Thank you.
Great video and very insightful and logical.
Glad you enjoyed it!
Good analysis, liked the whole storyline. However tax benefits, especially 80C ones, are NOT great and sec 54F can be used only once. Also, since introduction of new tax regime, if the annual interest outgo is less than 2L (4L for a couple), New tax regime is favorable thus defeating the whole real estate tax benefits. (telling from personal experience, I prepaid because I prefer peaceful sleep )
Very good video, thanks for making it
Glad you liked it!
Ravi Ji thanks for explaining
Always welcome
Hi Dear,
I am following you last few months and I want say that it is informative and good as how to create the portfolio and fire thing to get financial independence.
But my dear as far as u are saying about NCR in real estate. I want to share my experience as below:
Noida Sector-150 and particularly Godrej Nest apartment is concern
1.) 2BHK +study (1550 SQFT) u get around 5200-5400 (01JAN2018) price and now if u sell as on 24MAY24 is 10500-11000 (24MAY24)
So if u see XIRR would be 18% - 20% Appox.
Please Note : That also paying in 20:20:20:20:20 payment plan. Plus fortunate or unfortunately got extra time for around 1 year due to Corona problem.( Which I am not happy about at all due to obvious reason)
The main point I am trying to make in this video is that it isn’t about an individual case. There are plenty of great stories. There are plenty of horror stories as well. To make a judgement, you need to look at much larger data.
You just took your comfortable range of 2018 to till date to show good XIRR. What about 10-15 years long data on that flat or similar properties in that area? What's the XIRR?
@@WalterWhite-og6wj Boss nothing much to say here. I am just saying location is the key thing. Noida as a whole till now not good. Your luck in your favor as well.
XIRR is like CAGR U earn per year on my equity portfolio.
Hooe it is clear. I am nig here to proof anything and just share my exp which is impt and nothing else as your mind set brcoes with your exp and circumstances.
Thanks a lot dear. Bye
I have heard home buyer are not able to do registry for there houses is it true.
Hi, I think for the above xirr is around 12%.
Good analysis.
Voice is very low and had to play at 100% Vs typical level of 50-60% of full volume
Working fine for me
One more friend complained about this. Seemed ok to me.
Amazing ❤
Thanks 😄
Insightful!
Thank you,
Incomplete information. If you buy in ubder construction. Top location top builder . Your money goes in 4 years to builder. Which means you buying real estate in 4 years old rate . Also what about rental yield.
So you're keeping this thumbnail 😅
Haha. No. Changed it just before the video went live.